Milk Company bought a machine on 1 January 2015 for $5,000,000. The machine has an estimated useful life of 10 years with no residual value. The company uses straight-line depreciation method, cost model for all its PPE and its balance day is 31 December. On 30 September 2019, Milk Company decided to donate the machine to the Dunedin City Council for future fundraising. The fair value of the machine was estimated to be $2,800,000 at the time of the donation. Prepare the necessary journal entries to record the above transactions.
Milk Company bought a machine on 1 January 2015 for $5,000,000. The machine has an estimated useful life of 10 years with no residual value. The company uses straight-line depreciation method, cost model for all its PPE and its balance day is 31 December. On 30 September 2019, Milk Company decided to donate the machine to the Dunedin City Council for future fundraising. The fair value of the machine was estimated to be $2,800,000 at the time of the donation. Prepare the necessary journal entries to record the above transactions.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Milk Company bought a machine on 1 January 2015 for $5,000,000. The machine has an estimated useful life of 10 years with no residual value. The company uses
On 30 September 2019, Milk Company decided to donate the machine to the Dunedin City Council for future fundraising. The fair value of the machine was estimated to be $2,800,000 at the time of the donation.
Prepare the necessary journal entries to record the above transactions.
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